Developers using CHS to sell apartments to be obliged to submit quarterly reports

20.10.2016

Before the end of 2016 the Ministry of Construction will develop format of submission of quarterly reports for developers who sell apartments using cooperative housing societies (HBC).

Developers will be required to provide reports on their activities from January 1 of the next year.

“Today we can carry out inspections of HBC and request only documents that are not related to involvement of citizens’ funds by cooperatives, i.e. registers of shareholders, approval documents. We do not receive data on HBC on a regular basis because they do not hand us any statements,” said the Deputy Chairman of Moskomstroyinvest Alexander Goncharov.

Today in Moscow 23 cooperative housing societies are building 35 apartment blocks. Most of them were created by professional developers to bypass the requirements and guarantees of 214-FZ. This has already resulted in the emergence of a large number of affected equity holders.